Sizing Up Small Caps

Quiet Gusher

A different kind of oil and gas company, Cimarex enjoys rising earnings, reserves and production.

AMONG OIL AND GAS OUTFITS, Cimarex Energy sticks out as one odd duck. For one thing, most E&P companies are fairly leveraged, with debt running 35%-40% of capital, but this Denver-based company sports an absolutely pristine balance sheet, boasting over $2 a share in net cash. For another, in spite of an impassioned hard-sell from Wall Street, Cimarex has doggedly refused to sell-forward any of its production to hedge against a drop in the elevated price of oil and gas.